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Chit-Schemes Chit-Money Chit-System

Chit Schemes •Chit schemes have traditionally been generic, differentiating only in value and duration. The need for customization of products, to address varied requirements of chit members, is evident.

Chit Schemes •In this regard, the Small Enterprise Finance Centre at Institute for Financial Management and Research, along with need for financial education .

Chit Schemes •Customization of chit schemes, and eventually design and test new financial products that will further enhance the value of financial services provided via chit funds.

•Chit-fund executives say their schemes are more trustworthy than the informal groups. the appointed leader sometimes makes off with the kitty. Even an honest leader takes the first month’s pot as a handling fee.

• Chit-fund regulations cap a company’s commission at 5%. Yet the private groups add that only high-value schemes are viable under such curbs, making them less inclined to serve small-time savers in remote areas.

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